The clever scheme to acquire the freehold of Dolphin Square has
been held at a red light since September 2011 when the High Court
struck out proceedings to uphold the validity of a collective
enfranchisement claim on a procedural technicality. However
the light turned amber on 18 May 2012 when the Court of Appeal
decided the High Court was wrong to say those proceedings were an
abuse of process, overturned its decision and reinstated the
proceedings.
To recap, Westbrook, an overseas investment company, owns a
headlease and underlease of the substantial Dolphin Square
Development in Pimlico which comprises over 1200 flats in
all. When Westbrook purchased its interest in 2006 all the
flats were let on short lets or secure tenancies. As none of
the flats were held on long leases there was no right to
enfranchise under the Leasehold Reform, Housing and Urban
Development Act 1993. Westbrook then granted new long leases
to a series of newly formed Jersey companies,
